South Africa's unemployment rate rises to 33.7% despite job gains

South Africa's unemployment rate has continued to rise, reaching 33.7% in the third quarter of 2026, despite an increase of 101,000 jobs to 16.8 million between July and September. The number of unemployed people also rose by 97,000 to 8.6 million. The official unemployment rate has now risen in each quarter of 2026, from 31.4% at the end of 2025 to 32.7% in the first quarter and 33.6% in the second.

Economist Duma Gqubule described the unemployment situation as a "calamity" and cautioned against interpreting one quarter's employment increase as evidence of a recovery. He argued that the broader measure of unemployment, known as LU3, which includes those available for work but not searching, and those searching but not currently available, better reflected the scale of South Africa's jobs crisis. This measure accounted for 44% of the extended labour force, up from 43.8% in the previous quarter.

The labour force grew by 198,000 in the third quarter, faster than the increase in employment. More people were working, but more were also looking for work without finding it. Gqubule said the economy needed to generate enough employment both for people entering the labour market and for those already unemployed. A quarterly increase was insufficient if it failed to make sustained inroads into that backlog.

The formal sector accounted for the employment gains, adding 268,000 jobs to reach 12.3 million. However, much of that increase was offset by losses elsewhere: informal employment fell by 98,000 and the household sector lost 68,000 jobs. Finance recorded the largest industry gain, adding 111,000 jobs, followed by manufacturing with 33,000 and mining with 31,000.

For young people, the slight improvement in the unemployment rate came without an increase in employment. The number of employed people aged 15 to 34 fell by 5,000, while the number of unemployed young people decreased by 23,000. Their unemployment rate eased by 0.1 percentage points to 47.3%, leaving about five million unemployed. The youth labour force therefore contracted.

People who stop looking for work also fall outside the official unemployment count. The number of discouraged job seekers increased by 70,000 during the quarter to about 3.7 million. They form part of the potential labour force: people available to work who are not searching because they see little prospect of finding employment. Gqubule argued that the expense of searching was another barrier for people already without an income.

Employment gains were uneven across provinces, with the Western Cape adding 48,000 jobs, North West 45,000, the Eastern Cape 36,000 and Gauteng 25,000. Employment declined by 34,000 in the Free State and 30,000 in Mpumalanga. The survey also tracks people who are employed but need and are available for more working hours. The combined rate of unemployment and time-related underemployment eased by 0.1 percentage points to 36.5%.

Key points

• The official unemployment rate has risen in each quarter of 2026.
• The broader measure of unemployment, LU3, accounted for 44% of the extended labour force.
• The economy needs to generate enough employment for people entering the labour market and for those already unemployed.